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WorksheetsChapter 1 - MA2
Total questions: 15
Worksheet time: 8mins
Which of the following correctly describes a management information system?
A system which measures and corrects the performance of activities of subordinates in order to
make sure that the objectives of an organisation are being met and the plans devised to attain
them are being carried out.
A system by which managers ensure that information is obtained and used effectively and
efficiently in the accomplishment of the organisation's objectives.
A system which involves selecting appropriate information so that management can prepare a
long-term plan to attain the objectives of the organisation.
A collective term for the hardware and software used to drive a database system with the
outputs, both to screen and print, being designed to provide easily assimilated information for
management.
For whom are management accounts prepared?
Employees
Internal managers
Shareholders
Providers of finance
Which of the following is NOT an internal source of management information?
Personnel records
Production department records
Financial statements of competitors
Detailed time records
Which of the following is a common feature of cost accounting but not financial accounting?
Control accounts
Cost classification
Marginal costing
Periodic stocktaking
What is the purpose of management information?
Planning only
Planning and control only
Planning, control and decision-making only
Planning, control, decision making, and research and development
Which TWO of the following are characteristics of good management information?
Relevant
Detailed
Expensive to obtain
Timely
Which of the following describes a faceted code?
Each digit represents a classification, and each digit further to the right represents a smaller
subset than those to the left.
The code is an abbreviation of the item being coded.
Each digit of the code gives information about the item.
A digit, usually the first one, indicates the classification of the item.
In a large business which of the following activities is most likely to be the responsibility of a trainee
accountant?
Coding invoices
Determining selling price strategy
Interpreting cost variances
Making capital investment decisions
A company operates a fleet of delivery vehicles. It is aiming to determine cost units for operational purposes.
Which of the following cost of unit would be useful to the company?
Driver hour
Tonne per kilometre
Consider the following incomplete statements relating to management information
(i) clear to the user
(ii) Detailed and completely accurate
(iii) Provided whatever the cost
(iv) Relevant for the purpose
(i) and (ii)
(i) and (iv)
(ii) and (iv)
(i), (ii) and (iii)
A semi-variable cost is one that:
increases in direct proportion to output
remains constant irrespective of the level of output
contains an element of both fixed and variable cost
increases throughout the year
Which of the below is NOT a fixed cost?
Insurance
Business rates
Depreciation (straight line method)
Materials used in production
Production overhead comprises:
Variable overheads only
Indirect labour, indirect materials and indirect expenses related to production activity
Indirect expenses only
Indirect labour and material related to the production activity
Which of the following items would be treated as an indirect cost?
Wood used to make a chair
Metal used for the legs of a chair
Fabric to cover the seat of the chair
Staples to fix the fabric to the seat of the chair
The following graph represent which type of cost?
Fixed cost
Variable cost
Semi-variable cost
Stepped cost
